H&R Real Estate Investment Trust (TSE: HR-U) and private equity firm KingSett Capital Inc. have teamed together to buy Primaris Retail Real Estate Investment Trust (TSE: PMZ-U) in a transaction valued at $3.1 billion.

The agreement, announced late Feb. 5, comes less than a week after Primaris unveiled plans to purchase a portfolio of shopping centers for $377 million. The deal included a total of nine properties owned by Sherwood Park Mall Ltd., Markalta Developments Ltd. and Sleeping Bay Building Corp.

The boards of H&R REIT and rival Primaris, both based in Toronto, have approved H&R’s $1.3-billion acquisition offering — an increase from $700 million.

The new bid was, according to a company statement, facilitated by the inclusion of KingSett, which had previously withdrawn from the bidding process.

H&R would take over some 25 shopping centers belonging to Primaris, while KingSett will acquire the remaining 18 properties in the target’s portfolio valued at roughly $1.9 billion.

For more real estate coverage, see "Private Equity Perspective: Rising House Prices Lift All Funds?"

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